World Economy

One of my most overused sayings is that complex problems require simple solutions. What I mean by that is that you have to break complex problems into smaller pieces and solve those issues. Complex solutions by definition are a problem because most people cannot manage the complexity of the solution, thereby causing a problem.

One such problem is the current state of the world economy. With the culmination of the G20 summit, it is more apparent than ever that the economy of the world hinges on three basic financial areas: the US, Europe, and Asia. In reality, it falls to just a few countries, the US, Western Europe, Japan, and China. The proportion of wealth to population in the world is disproportionate to overall population. Most of the world lives in what these few nations would call poverty.

I believe that we are among the wealthy because we have been blessed by God for reasons that only He knows. His blessings of wealth and education are certainly not a reward for any great thing we have done. Quite the contrary, it is more likely that His blessings are in spite of our actions. With great blessings also come great responsibilities.

As world economic leaders, we have the responsibility to help nations less fortunate. This is not to advocate a blank check to third world dictators, but to use the resources we have been given to help other growing nations. However, our national debt has committed our resources to others, rendering the supply of additional funds negligible. Our people are taxed to a level that more than 30% of their working time is required just to meet the tax burden. This is time that could be spent helping others. This is money that could be spent helping others.

The reasons are as old as history itself and not worth pointing fingers at the mistakes of the past. The real question is much simpler. How do we restore our economy so that we can restore the economies of the world? Our leaders believe that we can just print more money and send it to starving nations in the form of "humanitarian aid". If it weren't so ridiculous, that solution would be hysterical. And yet, here we go again.

In the US, we pay our farmers not to grow certain crops as a form of price controls. And yet, sub-Saharan countries can't eat our dollars, but could use grain or rice or beef, chicken, fish, etc. Why don't we use the rich, fertile soil of the great plains to grow food for our friends in need? Simply because it isn't as politically expedient and our leaders will always do what is politically expedient.

So, the problem is complex. National debt keeps the government from using financial resources to help other poor nations. National debt creates higher taxes on the people, taking individual resources reducing individual's ability to help poor people. Higher taxes cause people to spend more time working, reducing their ability to go and teach and help poor people. And, a history of letting the government be responsible for our individual giving has lead us to a "let the government do it" mentality that empowers politicians.

Complex problems require simple solutions.

1. Constitutional amendment: No budget can be passed that does not reduce the national debt with the exception of war and even then only with a super majority vote of both houses and presidential signature. Each budget should include 15% of the total to debt reduction until zero. A national goal should be set to eliminate the debt in 15 years.
2. Law: 10% of each budget should go to foreign aid immediately and the President should push other wealthy nations to do the same. Do not send money to foreign governments, but send food, supplies, engineers, farmers, geologists, and teachers to help growing countries.
3. Reduce taxes on all Americans and American business. Reduction in tax rates, if done permanently, increases movement of money and money is taxed when it moves. Therefore, with more movement of money, actual tax dollars go up, even though tax rates drop.
4. Encourage faith based and community based efforts as non-profit, tax exempt entities to join the efforts to feed the world. People with the heart to serve others have a calling to serve and are always more effective than any government.

The solutions aren't all encompassing and the solutions aren't without pain. Reducing the federal debt and the federal budget will no doubt hurt some people that live off of the government budget. It isn't easy, but it has to be done for our nation to regain our place as a nations blessed by God.